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Should You Invest in the iShares U.S. Consumer Discretionary ETF (IYC)?
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Looking for broad exposure to the Consumer Discretionary - Broad segment of the equity market? You should consider the iShares U.S. Consumer Discretionary ETF (IYC - Free Report) , a passively managed exchange traded fund launched on 06/12/2000.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 14, placing it in bottom 13%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $719.13 million, making it one of the largest ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. IYC seeks to match the performance of the Dow Jones U.S. Consumer Services Index before fees and expenses.
The Russell 1000 Consumer Disc 40 Act 15/22.5 Daily Capped Index measures the performance of the consumer services sector of the U.S. equity market.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.41%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.53%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector--about 71.40% of the portfolio. Telecom and Consumer Staples round out the top three.
Looking at individual holdings, Amazon Com Inc (AMZN - Free Report) accounts for about 14.05% of total assets, followed by Tesla Inc (TSLA - Free Report) and Home Depot Inc (HD - Free Report) .
The top 10 holdings account for about 50.94% of total assets under management.
Performance and Risk
So far this year, IYC has lost about -25.17%, and is down about -17.70% in the last one year (as of 09/21/2022). During this past 52-week period, the fund has traded between $55.58 and $86.98.
The ETF has a beta of 1.15 and standard deviation of 25.89% for the trailing three-year period, making it a medium risk choice in the space. With about 179 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Consumer Discretionary ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IYC is a sufficient option for those seeking exposure to the Consumer Discretionary ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Consumer Discretionary ETF (VCR - Free Report) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF (XLY - Free Report) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $4.67 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $16.20 billion. VCR has an expense ratio of 0.10% and XLY charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the iShares U.S. Consumer Discretionary ETF (IYC)?
Looking for broad exposure to the Consumer Discretionary - Broad segment of the equity market? You should consider the iShares U.S. Consumer Discretionary ETF (IYC - Free Report) , a passively managed exchange traded fund launched on 06/12/2000.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 14, placing it in bottom 13%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $719.13 million, making it one of the largest ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. IYC seeks to match the performance of the Dow Jones U.S. Consumer Services Index before fees and expenses.
The Russell 1000 Consumer Disc 40 Act 15/22.5 Daily Capped Index measures the performance of the consumer services sector of the U.S. equity market.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.41%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.53%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector--about 71.40% of the portfolio. Telecom and Consumer Staples round out the top three.
Looking at individual holdings, Amazon Com Inc (AMZN - Free Report) accounts for about 14.05% of total assets, followed by Tesla Inc (TSLA - Free Report) and Home Depot Inc (HD - Free Report) .
The top 10 holdings account for about 50.94% of total assets under management.
Performance and Risk
So far this year, IYC has lost about -25.17%, and is down about -17.70% in the last one year (as of 09/21/2022). During this past 52-week period, the fund has traded between $55.58 and $86.98.
The ETF has a beta of 1.15 and standard deviation of 25.89% for the trailing three-year period, making it a medium risk choice in the space. With about 179 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Consumer Discretionary ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IYC is a sufficient option for those seeking exposure to the Consumer Discretionary ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Consumer Discretionary ETF (VCR - Free Report) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF (XLY - Free Report) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $4.67 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $16.20 billion. VCR has an expense ratio of 0.10% and XLY charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.